Chinese EV Makers Are Going BANKRUPT Leaving Huge EV GRAVEYARDS Behind!
Just a few years ago we were getting reports about hundreds of EV makers in China with new technologies and Ambitions to take over the global market today the reality is much different as it has become obvious that there isn’t enough room for all of them the market is oversaturated there isn’t enough
Capital for everyone while the ongoing price war made things even more complicated stay with us to find out why Chinese Eevee makers are going bankrupt leaving huge Eevee graveyards behind number five Eevee graveyards all around China One of the most interesting things we’ve been witnessing in China lately is
The so-called EV graveyards pretty much every bigger city has one of these with hundreds if not thousands of abandoned EVS what’s particularly interesting is that all of these vehicles have license plates meaning that at some point they were bought and registered how did they
End up like this it’s a bit of a mystery but many experts think it’s some kind of a scheme considering that the vast majority of these abanded EVS were purchased by car sharing companies it all started two decades ago when the Chinese government decided deed to invest billions in so-called new energy
Vehicles vehicles that would run on alternative sources of energy such as hybrids plug-in hybrids EVs and hydrogen fuel cell Vehicles by the end of that first decade of the 21st century when it became clear that EVS are the only way to catch up with Western Legacy car makers the government started pouring
Even more money into startup companies eventually the large number of EV makers Rose to 500 it was obvious that such a state couldn’t last for so long especially after authorities started embosing stricter conditions for incentives of course the key condition was to start selling vehicles in certain
Volumes but that was anything but easy to achieve all these small startup companies with limited Capital were desperate to figure out new ways to get much needed subsidies that’s the main indicator of an organized scheme many believe that these companies were selling EVS only to ensure incentives while car sharing companies never had
Serious intentions to use them regularly and while many claimed that this was a scheme to get subsidies from the government others liked to to point out that most of these graveyards are full of older first generation electric vehicles that were never able to compete in terms of technology and quality and
That all of this is a natural process where most startups end up either in bankruptcy or being purchased by a bigger player number four 90% of EV companies practically do not exist anymore China’s aimed to become a global leader in EV technology opened up so many possibilities for startup companies
Eventually the number of EV makers went up to 5 00 in 2018 and it was pretty clear that even the Chinese economy as huge as it is can support all of them if they don’t sell at least some of those EVS most companies managed to gain Technologies and established production
Facilities but when it was time to start making vehicles and volumes they ran out of money and then covid-19 happened and an economic crisis followed it was clear that there was not enough room for all those companies according to last year’s reports the number of EV makers went down significantly officially it’s under
100 but experts suspect that the actual number of those who produce and sell EVS is much smaller and that many more companies will end their businesses in the near future because to survive you need fresh capital and to get fresh Capital you need sales numbers the problem is that most of these companies
Never reached decent sales volumes many of them remained at the level of 500 units quarterly which definitely isn’t a number that could attract new investors that’s why those estimations that only around 50 out of 500 comp still operate makes sense 90% of the companies practically don’t exist anymore but it’s
Just a matter of time before all those Walking Dead officially declare bankruptcy and the Practical number also becomes official number three recent wave of bankruptcy the wave of bankruptcy we’ve been witnessing in the last couple of months is probably the best indicator the Chinese EV companies
Are in big trouble just in the last few months we saw five Chinese companies declaring bankruptcy with some of them being considered quite perspective until not so long ago the problem is as we’ve already mentioned that the market isn’t large enough for all of them if you look
At the Chinese car market in EV sales it turns out that 80% of total sales are held by the top 10 EV manufacturers it’s only around 20% that belongs to the rest of the pack so the data we’ve just mentioned doesn’t surprise at all according to some research onethird of
The currently active EV makers sell more than 2,000 Vehicles annually so it’s easy to assume that most of them will sooner or later end their business experts suggest that there are at least 20 more companies to declare bankruptcy this year among the companies that recently declared bankruptcy are quite
Some prospective names as mentioned for example there’s a company called lein which was even considered to be ah head of Tesla in terms of sales numbers eight or 9 years ago Neutron also went into bankruptcy just like ever Grande new energy Auto a company that’s part of a Chinese conglomerate that invested
Billions in electric vehicles but despite the massive Investments it never managed to make any decent sales number which cause a Monumental loss of $17 million on every EV sold finally let’s not forget the WM one of the most recent cases of bankruptcy once again we’re talking about an EV maker that seemed
Quite promising especially if we consider it one of the startups with the largest Capital estimated at $5.3 billion but despite some pretty respectable technological achievements WM was never able to compete in this price war and cover big losses the company is currently in a massive restructuring process and in a quest for
New investors but things don’t look promising at all number two even big players are questionable with the ongoing price war and other challenges of the super competitive Chinese EV Market the fall of all those startups doesn’t surprise at all but what’s a little surprising is that even the big
Players have trouble keeping up with the competition even among the top 10 makers there’s a lot of struggle because it’s not easy to make a profit on EVS even with high volume sales practically byd is the only Chinese car maker that makes money on EVS moreover byd and Tesla are
Currently the only two companies that make a profit on EVS in the entire world other major car makers from China struggle to crack the EV economy despite the generous government incentives and low labor costs they’re all losing money including companies like Neo this company already established pretty impressive production facilities and
Currently employs more than 11,000 people but sales are anything but good considering that Neo managed to sell just 8,000 last year losing around $35,000 on each electric vehicle which is on par with Western Legacy car makers like Ford with that in mind it doesn’t surprise that companies like Neo are
Looking for financial injections all around the world including one from Abu Dhabi for a 7% stake in return other major players including Chinese Legacy car companies are struggling with the EV economy and for them the only mitigating circumstance is that they have the capacity to compete internationally in
Various markets around the world which lead leads us to the number one reason why so many Chinese companies are failing number one domestic Market limitation probably the main reason why so many EV makers went into bankruptcy is the fact that the Chinese domestic Market has so many limitations China may
Be a huge Market but isn’t exactly crowded with wealthy households instead most Chinese people can’t afford expensive cars so companies are forced to put everything on small and cheap EVS the problem is that even if profitable the margins are minimal in this class of vehicles which means that only a few car
Makers will be able to survive the ongoing price War most others will go into bankruptcy or end up acquired by some of the bigger players as mentioned by and Tesla are probably the only EV companies that count on EV profit besides them there are a few more Legacy
Car bakers that can survive because these companies don’t depend on the domestic Market only there are companies like G or mg with a strong presence in various markets around the world these two companies have been selling cars in various International markets for years and already established a position of
Affordable alternatives to Western car makers in those markets they can offer competitive prices whether it’s about electric or traditional internal combustion powered models and compensate for the losses they are and will be making domestically so what we’re witnessing now is a complete change in the Chinese EV Market landscape the era
Of diversity has come to an end new technologies have been gained and now it’s time for the big ones to benefit in other words the number of Chinese EV companies will continue to fall and probably won’t stop until there are just a few major players left thanks for
Watching and see you next time
Chinese EV Makers Are Going BANKRUPT Leaving Huge EV GRAVEYARDS Behind! In the heart of China’s electric vehicle revolution, a silent EV catastrophe is unfolding. Giant EV makers, once humming with promise, now echo with desolation. Abandoned EVs, like forgotten dreams, litter vast graveyards. In this video, we’ll take you on a tour of the Chinese EV graveyards, where hundreds of failed electric car startups have left behind their dreams and their vehicles. What is causing this EV collapse, and who is to blame? You’ll see the shocking truth behind the Chinese EV bubble, and why it’s about to burst. You’ll also learn how this affects the global EV market, and what it means for the future of green transportation. Don’t miss this exclusive report on the Chinese EV crisis.
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